Kaufland closes five branches: a large cut in NRW!

Kaufland closes five branches: a large cut in NRW!

The retail chain Kaufland is facing a wave of branch closings in Germany. In 2024 the company has already closed three locations, and further closures are planned for 2025. This raises questions about the economic framework and the future development of retail.

like echo24.de , the Kaufland-branches were reported in June 2024) and Greiz (Thuringia) closed. In addition, the branch in the Bochum-Ruhrpark was closed in September 2024, also in North Rhine-Westphalia. Further closures are planned for the coming year, including the business in the Palais Vest in Recklinghausen, which will close in January 2025, and the branch in Dortmund-Mengede, which is scheduled for March 2025.

reasons for the closures

The closures are made for economic reasons, whereby Kaufland has not made any detailed statements about the exact causes. According to t-online.de there is no recognizable connection between the closed branches. This could indicate the general challenges in retail, which are reinforced by various factors such as rising prices and changed shopping habits.

In 2024, Kaufland not only closed branches, but also opened new ones. In July, two new locations in North Rhine-Westphalia were added. In addition, the Federal Cartel Office approved the takeover of four other locations for the company in November 2024, which indicates a strategy for stabilization and expansion.

market development in retail

retail in Germany is in a continuous change. According to Statista.com , sales in retail are currently around 649.9 billion euros. The food retail trade is the largest sub-market, while classic buying and department stores lose importance. Its market share fell from 4.2 percent in 2000 to around 1.6 percent, which reflects the current market development.

In addition, inpatient retail is put under pressure through the increasing shift in purchasing to online trading. Since 2000, the market share of online trading has increased from 0.2 percent to around 6.5 percent, which has a strong impact on established providers.

The challenges for retail were also reinforced by Corona pandemic and the Russia Ukraine War. Both events have negatively influenced consumers' buying behavior and created increased uncertainty that also affects sales in the food retail trade.

Overall, it remains to be seen how the situation for Kaufland and retail will develop in Germany. The coming months could be crucial for the orientation of the company and its market position in a rapidly changing environment.